Payroll Hawaii, Unique Aspects of Hawaii Payroll Law and Practice

The Hawaii State Agency that oversees theexcept for State employees hired after 7/1/1998.
collection and reporting of State income taxesHawaii requires the following information on an
deducted from payroll checks is:employee's pay stub:
Department of TaxationGross and Net Earningspay period datespayment
Withholding Taxdateitemized deductions
P.O. Box 3827Hawaii requires that employee be paid no less
Honolulu, Hi 96812-3827often than semimonthly; monthly if union contract
808-587-4242or director of labor relations allows..
Hawaii requires that you use Hawaii form "HW-4,Hawaii requires that the lag time between the end
Employee's Withholding Exemption and Statusof the pay period and the payment of wages to
Certificate" instead of a Federal W-4 Form forthe employee not exceed seven days; up to 15 if
Hawaii State Income Tax Withholding.the director of labor relations allows.
Not all states allow salary reductions made underHawaii payroll law requires that involuntarily
Section 125 cafeteria plans or 401(k) to beterminated employees must be paid their final pay
treated in the same manner as the IRS codeimmediately or the next working day if
allows. In Hawaii cafeteria plans are: not taxableimmediately is impossible. The next regular
for income tax calculation; taxable forpayday if suspended due to a labor dispute or
unemployment insurance purposes. 401(k) plantemporarily laid off.
deferrals are: not taxable for income taxes;Voluntarily terminated employees must be paid
taxable for unemployment purposes.their final pay by the next regular payday or by
In Hawaii supplemental wages are required to bemail if employee requests it; immediately if one
aggregated for the state income tax withholdingpay period's notice is given.
calculation.Deceased employee's wages up to $2000.00
You may not file your Hawaii State W-2s bymust be paid to the surviving spouse or adult
magnetic media.children (in that order) within 30 days. Conditions
The Hawaii State Unemployment Insurancerequire an affidavit of relationship and a receipt.
Agency is:Escheat laws in Hawaii require that unclaimed
The Department of Labor and Industrial Relationswages be paid over to the state after one year.
Unemployment Insurance DivisionThe employer is further required in Hawaii to
830 Punchbowl St.keep a record of the wages abandoned and
Honolulu, HI 96813turned over to the state for a period of five
808-586-8970years.
The state of Hawaii taxable wage base forHawaii payroll law provides for a maximum tip
unemployed purposes is wages up to $30, 200.credit against minimum wage of $0.25.
Hawaii has optional reporting of quarterly wagesIn Hawaii the payroll laws covering mandatory
on magnetic media.rest or meal breaks are only that minors under 16
Unemployment records must be retained in Hawaiimust have a 30-minute meal period after five
for a minimum period of five years. Thishours of work.
information generally includes: name; social securityThere is no provision in Hawaii law concerning
number; dates of hire, rehire and termination;record retention of wage and hour records
wages by period; payroll pay periods and paytherefor it is probably wise to follow FLSA
dates; date and circumstances of termination.guidelines.
The Hawaii State Agency charged with enforcingThe Hawaii agency charged with enforcing Child
the state wage and hour laws is:Support Orders and laws is:
The Department of Labor and Industrial RelationsChild Support Enforcement Agency
Enforcement DivisionDepartment of the Attorney General
830 Punchbowl St., Rm. 340601 Kamokila Blvd., Ste 251
Honolulu, HI 96813Kapolei, HI 96707
808-586-8777808-587-4250
The minimum wage in Hawaii is $6.25 per hour..
The general provision in Hawaii concerning payingHawaii has the following provisions for child
overtime in a non-FLSA covered employer is onesupport deductions:
and one half times regular rate after 40-hourWhen to start Withholding? first pay period within
week.7 days of mailing
Hawaii State new hire reporting requirements areWhen to send Payment? Within 5 days of
that every employer must report every new hirePayday.
and rehire. The employer must report theWhen to send Termination Notice? Immediately
federally required elements of:Maximum Administrative Fee? $2 per payment
Employee's nameWithholding Limits? Federal Rules under CCPA.
Employee's addressPlease note that this article is not updated for
Employee's social security numberchanges that can and will happen from time to
Employer's nametime.
Employer's addressCharles J. Read, CPA has been in the payroll,
Employer's Federal Employer Identification Numberaccounting and tax business for 30 years, the last
(EIN)fifteen in private practice.
This information must be reported within 20 daysMr. Read is the author of "How to Start a New
of the hiring or rehiring.Business."
The information can be sent as a W4 orTo find professional payroll service at a budget
equivalent by mail, fax or electronically.price go to a paperless payroll company.
There is a $25.00 penalty for a late report inFor a full service payroll bureau with CPA's on
Hawaii.staff visit .
The Hawaii new hire reporting agency can beSee an excerpt of Mr. Read's interviews from
reached at 808-692-7029.William Shatners "Heartbeat of America" television
Hawaii does allow compulsory direct depositshow on the web sites linked above.